Chapter 1

Servicing

Section 101	Generally

101.01	Relationship

Requirements

You must:

service all Portfolio Mortgage Loans Portfolio Mortgage LoansMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf per the Guide GuideMultifamily Selling and Servicing Guide controlling all Lender and Servicer requirements unless a Lender Contract specifies otherwise. ; and
not engage any Person PersonLegal person, including an individual, estate, trust, corporation, partnership, limited liability company, financial institution, joint venture, association, or other organization or entity (whether governmental or private). on the Restricted Vendor List to perform any service for, or be involved in any way with, the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 servicing.
Test Shalini added on 08/18/26.

101.02	Standard

Requirements

You must:

always protect Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s interest in the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 ;
collect all amounts due from the Borrower BorrowerPerson who is the obligor per the Note. for Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! and any MBS Investor MBS InvestorFor MBS Mortgage Loans, either a Third Party MBS Investor for Lender-Arranged Sales, or the Multifamily Trading Desk. ;
service each Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 per these documents until your obligations end in the following order of priority:

Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ;
Disclosure Documents Disclosure DocumentsDocuments for an Investor for a particular Securitized Mortgage Loan, which may include the MBS Trust Agreement, Prospectus, and any related documents. ;
Lender Contract Lender ContractProgram Documents per the Multifamily Selling and Servicing Agreement. ;
Guide GuideMultifamily Selling and Servicing Guide controlling all Lender and Servicer requirements unless a Lender Contract specifies otherwise. ; and
commercially sound servicing practices and business judgment exercised by prudent institutional servicers for comparable mortgage loans in the Property's Property'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). jurisdiction;

perform additional servicing duties when directed by Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ; and
hold any retained subservicer to this standard.

101.03	Servicing File

Requirements

You must:

maintain a separate Servicing File Servicing FileYour file for each Mortgage Loan serviced. for each Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 ; and
permit Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! to periodically examine your Servicing Files Servicing FilesYour file for each Mortgage Loan serviced. .

Operating Procedures

The Servicing File Servicing FileYour file for each Mortgage Loan serviced. must:

1. Per the Multifamily Servicing File Content Requirements ( Form 4800 ), include a copy of all

Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 origination documents,
underwriting documents,
Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , and
servicing documents.

2. Fully document your actions for each Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 .

3. Be in paper or electronic imaged form.

4. Comply with all record retention requirements per the Program Rules.

101.04	Loan Document Compliance

Requirements

For each Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 , you must:

monitor the Borrower's Borrower'sPerson who is the obligor per the Note. compliance with all Loan Document Loan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. terms and conditions; and
appropriately address noncompliance.

Section 102	Uniform Commercial Code (UCC) Financing Statements

102.01	Filing Documents

Requirements

You must maintain Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's first Lien LienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. security interest in the Personal Property Personal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. by filing all necessary UCC UCCUniform Commercial Code financing statements and continuations by the earlier of:

the date any outstanding filing lapses; or
any applicable jurisdiction filing deadline.

Guidance

For all Mortgage Loans Mortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 , you should effectively monitor

UCC UCCUniform Commercial Code financing statements, and
continuation filing deadlines.

Operating Procedures

Each Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 Servicing File Servicing FileYour file for each Mortgage Loan serviced. must include a file-stamped copy of the UCC UCCUniform Commercial Code financing statements filed for the Personal Property Personal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. , including

initial filings,
continuations,
assignments, and
other amendments.

102.02	UCC Continuations, Amendments, and Terminations

Operating Procedures

You are authorized and required to file:

All UCC UCCUniform Commercial Code continuation statements in all appropriate jurisdictions.
Any UCC UCCUniform Commercial Code financing statement amendments to correct any scrivener’s error.

Unless Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! granted you a Limited Power of Attorney Limited Power of AttorneyLegal document authorizing a Servicer to execute certain Loan Documents related to the asset management of a Mortgage Loan as attorney-in-fact on behalf of Fannie Mae. , you are not authorized to

sign or file any UCC UCCUniform Commercial Code financing statement amendment other than for a scrivener’s error, or
terminate any UCC UCCUniform Commercial Code financing statement.

Guidance

See Part V, Chapter 4: Asset Management: Loan Document Administration, Section 403: Execution of Documents by Servicer – Limited Power of Attorney for more information.

Section 103	Letters of Credit

103.01	Servicing File

Requirements

You must immediately deliver to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! :

the original Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. ; and
any new, replacement, or amended Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. delivered to you.

Operating Procedures

In your Servicing File Servicing FileYour file for each Mortgage Loan serviced. , you must keep a copy of any

Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. , and
the associated Achievement Agreement Achievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. .

103.02	Certification

Operating Procedure

With any new or replacement Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. , you must

submit a Borrower Letter of Credit Certification ( Form 4664.B ), and
confirm the Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. complies with Part I, Chapter 1: Overview, Section 106: Letters of Credit .

103.03	Monitoring Expiration Dates

Operating Procedures

You must:

effectively monitor each Letter of Credit's Letter of Credit'sLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. expiration date; and
ensure Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! receives an acceptable renewal or replacement Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit.
- by the deadline per the Achievement Agreement Achievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. , or
- if no deadline is specified, at least 5 Business Days Business DaysAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before the Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. expires.

If you do not provide a renewal or replacement Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. , Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will present a sight draft against the expiring Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. .

103.04	Replacement Letter of Credit

Operating Procedures

You must ensure any replacement Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. has an expiration date at least 30 days after the applicable Achievement Agreement Achievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. expiration date.

103.05	Verifying Issuer Ratings

103.05A	Monitoring

Operating Procedures

While each Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. is outstanding, you must:

comply with Part I, Chapter 1: Overview, Section 106.03: Verifying Issuer Ratings ; and
document each rating verification in your Servicing File Servicing FileYour file for each Mortgage Loan serviced. .

103.05B	Rating Noncompliance

Operating Procedures

If the rating of the financial institution issuing or confirming the Letter of Credit does not comply with...	You must...
Part I, Chapter 1: Overview, Section 106.02: Issuers and Ratings	Promptly notify Multifamily Business Operations Multifamily Business OperationsTeam that can be contacted at [email protected]. even if the Achievement Agreement Achievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. provides different acceptable issuer rating criteria, or does not authorize Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! to act if the rating falls.
Rating criterial in the Achievement Agreement or other Collateral Agreement	Promptly notify Multifamily Business Operations Multifamily Business OperationsTeam that can be contacted at [email protected]. . Require the Borrower BorrowerPerson who is the obligor per the Note. to provide a replacement or confirming Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. from an acceptably rated institution by the: replacement deadline per the Achievement Agreement Achievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. ; or earlier of 30 days after notifying the Borrower BorrowerPerson who is the obligor per the Note. , or 5 Business Days Business DaysAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before the Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. expires.

If the rating of the financial institution issuing or confirming the Letter of Credit does not comply with...

You must...

Part I, Chapter 1: Overview, Section 106.02: Issuers and Ratings

Promptly notify Multifamily Business Operations Multifamily Business OperationsTeam that can be contacted at [email protected]. even if the Achievement Agreement Achievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument.

provides different acceptable issuer rating criteria, or
does not authorize Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! to act if the rating falls.

Rating criterial in the Achievement Agreement or other Collateral Agreement

Promptly notify Multifamily Business Operations Multifamily Business OperationsTeam that can be contacted at [email protected]. .
Require the Borrower BorrowerPerson who is the obligor per the Note. to provide a replacement or confirming Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. from an acceptably rated institution by the:
- replacement deadline per the Achievement Agreement Achievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. ; or
- earlier of
  - 30 days after notifying the Borrower BorrowerPerson who is the obligor per the Note. , or
  - 5 Business Days Business DaysAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before the Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. expires.

103.06	Managing Draws and Releases

103.06A	Letter of Credit Draws

Requirements

You must promptly notify Multifamily Asset Management Multifamily Asset ManagementTeam that can be contacted at [email protected]. and Multifamily Business Operations Multifamily Business OperationsTeam that can be contacted at [email protected]. if a Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. draw is appropriate.

103.06B	Releasing/Reducing Letters of Credit or Other Collateral

Operating Procedures

Unless a Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 is being fully repaid, you must:

assess each Borrower BorrowerPerson who is the obligor per the Note. request to fully release or partially reduce a Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. or other collateral;
submit your recommendation to Multifamily Asset Management Multifamily Asset ManagementTeam that can be contacted at [email protected]. ; and
notify the Borrower BorrowerPerson who is the obligor per the Note. when each request is approved or denied.

Section 104	Bond Transactions and Credit Enhancement Mortgage Loans

104.01	Borrower Obligations

104.01A	Payments

Operating Procedures

Collect all of the following from the Borrower BorrowerPerson who is the obligor per the Note. :

reimbursement of all amounts Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! paid or is due per any:
- Credit Enhancement Instrument Credit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for Bonds MBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. ;
- Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or Reimbursement Agreement;
- Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. ; and
- Interest Rate Cap Agreement Interest Rate Cap AgreementContract setting forth the terms and conditions of an Interest Rate Cap, Hedge, or Swap. or other interest rate hedge;
any Facility Fee and/or Activity Fee for an unreimbursed Liquidity Advance per the Reimbursement Agreement;
all amounts required to replenish the PRF PRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. ;
any Prepayment Premium Prepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. or other Termination Fee;
any other fees, expenses, or additional costs due per any
- Credit Enhancement Instrument Credit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for Bonds MBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. ,
- Security Instrument Security InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the Loan Document obligations. ,
- Reimbursement Agreement, or
- other Loan Document Loan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; and
any other amounts due Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! or the Bond Trustee Bond TrusteeTrustee for a Credit Enhancement Instrument. .

Steps	Activity...
Calculate the Amount Due	After receiving the information to calculate the amount due, you must immediately invoice the Borrower BorrowerPerson who is the obligor per the Note. , and remit the funds to the appropriate parties per the Reimbursement Agreement or Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .
Advance Funds Notification	Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will notify you of the amount disbursed on or after each disbursement date for any: Credit Enhancement Instrument Credit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for Bonds MBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. ; Loan Document Loan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; or other Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. .
Payment Timing	You must remit all Borrower BorrowerPerson who is the obligor per the Note. payments per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s instructions. If you do not pay Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! or the Bond Trustee Bond TrusteeTrustee for a Credit Enhancement Instrument. until the next Business Day Business DayAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. , you must invest the funds overnight, and remit all investment earnings to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! or the Bond Trustee Bond TrusteeTrustee for a Credit Enhancement Instrument. with the payment. For Borrower BorrowerPerson who is the obligor per the Note. payments received after 4:00 p.m. Eastern Time, you must use your best efforts to invest the funds.

Steps

Activity...

Calculate the Amount Due

After receiving the information to calculate the amount due, you must

immediately invoice the Borrower BorrowerPerson who is the obligor per the Note. , and
remit the funds to the appropriate parties per the Reimbursement Agreement or Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .

Advance Funds Notification

Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will notify you of the amount disbursed on or after each disbursement date for any:

Credit Enhancement Instrument Credit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for Bonds MBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. ;
Loan Document Loan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; or
other Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. Collateral Agreement Collateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. .

Payment Timing

You must remit all Borrower BorrowerPerson who is the obligor per the Note. payments per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s instructions.

If you do not pay Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! or the Bond Trustee Bond TrusteeTrustee for a Credit Enhancement Instrument. until the next Business Day Business DayAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. , you must

invest the funds overnight, and
remit all investment earnings to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! or the Bond Trustee Bond TrusteeTrustee for a Credit Enhancement Instrument. with the payment.

For Borrower BorrowerPerson who is the obligor per the Note. payments received after 4:00 p.m. Eastern Time, you must use your best efforts to invest the funds.

104.01B	Principal Reserve Fund

Requirements

You must ensure no PRF PRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. withdrawal occurs without Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's approval.

Operating Procedures

For each Credit Enhancement Mortgage Loan Credit Enhancement Mortgage LoanMortgage Loan financed by a Bond issuance where Fannie Mae provides credit enhancement by a Credit Enhancement Instrument, or an MBS for Bonds. , you must:

Review the Bond Trustee's Bond Trustee'sTrustee for a Credit Enhancement Instrument. reported PRF PRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. balance.
Collect from the Borrower BorrowerPerson who is the obligor per the Note. any amount withdrawn from the PRF PRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. , including withdrawals reimbursing Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! for amounts it paid per the
- Credit Enhancement Instrument Credit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for Bonds MBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. , or
- Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .

104.02	Cash Collateral Agreements

Requirements

You must:

ensure any control agreement perfecting Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s security interest in pledged collateral remains in full force and effect; and
not invest, apply, or release any collateral under a Cash Collateral or other Security Agreement.

104.03	UCC Filings

Operating Procedures

For UCC UCCUniform Commercial Code filings per Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. documents, you must:

instruct each Bond Trustee Bond TrusteeTrustee for a Credit Enhancement Instrument. to file UCC UCCUniform Commercial Code continuation statements at least 90 days before the filing expires; and
confirm the filing occurred before expiration.

104.04	Remarketing Agent Changes

Requirements

For Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. transactions that remarket on scheduled mandatory tender and remarketing dates where Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! provides Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. liquidity support, you must ensure any new Remarketing Agent Remarketing AgentPerson selected by the Issuer to reset the interest rate on the Bonds in order to resell any Bonds tendered by investors on the interest rate reset date. complies with Part III, Chapter 18: Bond Transactions and Credit Enhancement Mortgage Loans, Section 1803.02: Remarketing Agent .